Bob and Bill Allocate 2/3 of the Profits and Losses

question 160

Multiple Choice

Bob and Bill allocate 2/3 of the profits and losses to Bob and 1/3 to Bill. The net income of the firm is $30,000. The journal entry to close the Income Summary will include:

• A)credit to Income Summary for $20,000.
• B)debit to Bob, Capital for $10,000.
• C)credit to Bob, Capital for $20,000.
• D)credit to Income Summary for $30,000.

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Definitions:

Cultural Tightness

Describes the degree to which a culture holds tight norms and a low tolerance for deviant behavior, affecting how flexible or strict societal norms are.

Cultural Looseness

Refers to the degree to which cultural norms and behaviors in a society are not strictly enforced, allowing for more variability and flexibility in individual behavior.

Unstated Conflict

A disagreement or tension that exists without explicit acknowledgment or communication among parties involved.

Tight Culture

A social system characterized by strong norms and low tolerance for deviant behavior, promoting uniformity in actions and values.